Gold and silver futures fell in the domestic market today. Gold futures on MCX rose to Rs 49,131 per 10 grams. While silver futures fell 0.3 percent to Rs 71,619 per kg. Gold and silver had gained 0.35 percent in the previous trading session. The yellow metal is down by about Rs 7,000 from last year's high (Rs 56,200 per 10 grams). In March, gold prices had touched a low of around Rs 44,000 per 10 grams.
So much is the price in the global market
Spot gold remained flat on the weak dollar in international markets. Spot gold was around $ 1900 an ounce. Among other precious metals, silver was up 0.1 percent at $27.89 an ounce, palladium was up 0.1 percent at $2,837.76 and platinum was up 0.1 percent at $1,174.02. The dollar index was flat at 90.003, down from last week's three-week high of 90.627.
ETF inflows reflect weak investor interest
The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or gold ETF, fell 0.6 percent to 1,037.33 tonnes on Monday as against 1,043.16 tonnes on Friday. Gold ETFs are based on the price of gold and their price fluctuates only with the fluctuations in its price. It should be noted that ETF inflows reflect weak investor interest in gold. A stronger dollar makes gold more expensive for holders of other currencies.
It is known that India is the largest gold importer country in the world. Gold is mainly imported to meet the demand of the jewelry industry. India imports 800 to 900 tonnes of gold annually in terms of volume. The government has cut import duty on gold from 12.5 percent to 10 percent (7.5 percent customs duty and 2.5 percent agriculture infrastructure and development cess) in the budget. Gold is generally seen as a hedge against inflation.